Instructor: D. W. Hedrick Office

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Economics 202
Principles of Macroeconomics

Winter 2009 8 and 9 a.m.


Instructor:                 D.W. Hedrick

Office:                       Shaw-Smyser 424
Telephone:               963-2426
Office Hours:            M and F 10:00-11:00 a.m. and T and TH 2:30-
                                  3:30 and by appointment.
Web Page:       


This course provides an introduction to the organization of the U.S. economy, long-run economic growth and short-run economic fluctuation, the structure and role of the monetary system, the problems of unemployment and inflation, and the overall impact of government spending and taxation on the macroeconomy.


The principal objectives of the course are to provide students with an understanding of the macroeconomy.  Students will become familiar with basic forces behind economic growth and short-run fluctuations in market economies and the basic techniques of modeling overall economic activity. They will develop an appreciation for the challenges economists and policymakers face in using monetary and fiscal policies to alter short-run economic performance and to create policies to help foster long-run economic growth.  Students will also be introduced to the importance and the impacts of international trade and finance in modern market economies.


The textbook and homework assignments are available online through Aplia.  See instructions below for registration and payment Click Here.

Required:         (1) On-line Mankiw, N. Gregory, Principles of Macroeconomics Economics, 45d

                       Edition, Thomson – SouthWestern, c2008, or Mankiw, N.
                       Gregory, Principles of Macroeconomics, 3rd Edition, Thomson – SouthWestern, c2004
                       (2) Aplia – An internet-based tutorial and homework problem that will be used for the required
                       Course Key: T4LZ-EQ9E-JXVS
                  (3) Hakes, David , Study Guide to Accompany Principles of Economics. Buy on-line.

Suggested Reading: The Wall Street Journal and the Economist


1.      Apply graphing skills to analyze macroeconomic models.  These skills include an understanding of slope and its computation, curve shifts and movements along a curve, and the ability to draw inference from graphs.

2.      Utilize quantitative techniques in the analysis of macroeconomic models.  These techniques include manipulating and solving simple linear systems of equations, and computing growth rates.

3.      Apply economic theory to contemporary macroeconomic policy issues.

4.      Identify, explain trends in, and explain the relationships between the following macroeconomic variables:

         GDP (real and nominal)

         Sources of economic growth (including capital accumulation, technological innovation, and productivity growth)

         Inflation

         Unemployment

         Fiscal policy (including government spending, taxation, budget deficits, and national debt)

         Monetary policy (including money supply, interest rates, and the structure of the U.S. banking system)

         Consumption spending, saving, wealth, and investment

         Exchange rates, exports, and imports




Topic                                                                  Text Chapter(s)

I.    Introduction to Macroeconomics and Brief Review        Split

      Of  Microeconomics        

      Circular Flow                                                               10       

       Review of Micro                                                         1-8      

II.   The Data of Macroeconomics

            National Income                                                     10       

            Cost of Living                                                         11       

III.   The Real Economy: Long-Run Analysis                                               

            Production and Growth                                           12       

            Saving and Investment                                             13       

            Basic Tools of Finance                                            14       

            Unemployment and Its Natural Rate                        15       

IV.   Money and Prices: Long-Run

            The Monetary System                                             16       

            Money Growth and Inflation                                    17       

V.    The Macroeconomics of Open Economies
            Basic of Open-Market Macroeconomies                 18       

            Theory of Open Economies                                     19       

VI.   Short-run Fluctuations

            Aggregate Demand and Supply                                20       

            Monetary and Fiscal Policy                                      21       

            Inflation and Unemployment: Short-run                    22       

VII.  Controversy in Macroeconomic Policy

            Debates about Macroeconomic Policy                     23       





Economics is a challenging subject for most and requires significant study to successfully master and apply economic concepts.  I suggest that you read, or at least skim, the chapters in the text before they are covered in class. As soon after class as possible, I recommend you retire to a quiet place and reread the text and recopy the lecture notes.  This will help reinforce what you have learned and point out areas that you need clarified.


Feel free to ask questions in class.  Remember, “There is no such thing as a dumb question.”  Also, please make use of office hours, particularly when you need a bit more help understanding the material.




Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative analyses of contemporary macroeconomic policy issues, as well as an understanding of the variables listed in outcome #4.

Grades will be based on twice-weekly online homework assignments, weekly quizzes, three mid-term examinations, and an optional comprehensive final examination.  Important:  No makeup quizzes will be given for any reason.  Makeup midterms and finals will only be given for emergencies and require a note signed by a physician or a senior officer in Student Affairs.

Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative analyses of contemporary macroeconomic policy issues, as well as an understanding of the variables listed in outcome #4.


The initial Aplia assignments include a tutorial on mathematics and graphs.  Please read the section on Grade It Now in the introductory assignment.  Aplia allows students three opportunities to answer a question with explanation provided when a wrong answer is given. Full credit is given if the first response is correct. The partial credit formula is described in Aplia.


The Aplia program is self-contained and includes 24 hour online and toll-free telephone support.  Students who do not have computers at home or a high-speed internet connection are encouraged to use the CWU computer labs.  The schedule for the computer labs can be viewed at   .  The lowest 4 homework assignments will be dropped and the remaining homework assignments will count for 100 points.


A total of seven weekly quizzes will be given on Friday, excluding the weeks of midterms, the first week of class, and during Thanksgiving Holiday (quiz on Wednesday Nov. 21). Each quiz will count for 20 points and the lowest two quizzes will be dropped.  The total points from quizzes will be 100 points. 0Three midterm examinations will be given.  The midterms dates are Friday, January 30; Friday, February 20 (deadline for uncontested withdraw); and Friday, March 6.  If you cannot attend class on these dates, drop the class and take it at another time.  Each midterm will count for 100 points.


An optional comprehensive final examination will be given.  The optional final will count for 100 points and be used to replace the lowest midterm score.  The final dates are: 8:00 am Section - Friday, March 20, 8:00 -9:30am; and 9:00 am Section -Wednesday, March 18, 8:00 -9:30 am.


NO early or makeup finals will be given. 




Grades are based upon the percentage of the 500 possible points from homework, quizzes, midterms and the optional final.  The following scale will be used to determine the final grade:


A         >=93%

A-        >=90% and <93%

B+       >=87% and <90%

B         >=83% and <87%

B-        >=80% and <83%

C+       >=77% and <80%

C         >=73% and <77%

C-        >=70% and <73%

D+       >=67% and <70%

D         >=63% and <67%

D-        >=60% and <63%

F          <60%




The classroom should be a productive and interesting learning environment, but I need your help.  As a consideration to your classmates, please make an effort to be on time.  If you do arrive after the lecture has begun, a quiet entrance would be greatly appreciated.  In addition, please refrain eating noisily during class.


Students with disabilities who wish to set up approved academic adjustments for this class should schedule a meeting with the professor as soon as possible.  Please provide the professor the “Confirmation of Eligibility for Academic Adjustments” provided by the Disability Support Services Office.  Students with disabilities without the confirmation should contact the Disability Support Services (DSS) Office, Bouillon 205 ( , 963-2171). Students who believe they may be affected by a disability are also encouraged to contact the DSS office.


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Student Registration and Payment Instructions

Course Name: Principles of Macroeconomics (Mankiw 5e) Winter 09

Start Date: 01/06/2009

Instructor: Prof. Hedrick

Course Key: T4LZ-EQ9E-JXVS


You can begin working on your homework as soon as you register!

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In this course, you will use a textbook and Aplia's website.


In most cases, you can save money if you buy Aplia and your textbook together. See payment options below.


You will have access to a digital version of your textbook using Aplia.


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If you have never used Aplia before...

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Connect to

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Click the New Student link and enter your Course Key: T4LZ-EQ9E-JXVS. Continue following the instructions to complete your registration.

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If you have used Aplia before...

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Connect to

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Sign in with your usual e-mail address and password and enter your Course Key when prompted: T4LZ-EQ9E-JXVS. If you are not prompted for a new Course Key, click the Enter Course Key button to enroll in a new Aplia course. Enter your Course Key when you are prompted.

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* You will have different payment options after you register for your course. If you choose to pay later, you can use Aplia without paying until 11:59 PM on 01/25/2009.


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Option 1: Digital Textbook with Aplia Access

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From Aplia: Purchase access to your course from Aplia's website for $70.00 USD.

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From Bookstore: Purchase an Aplia Access Card from your campus bookstore.

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Option 2: Physical Textbook with Aplia Access (also includes digital textbook)

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From Aplia: Purchase access to your course for $70.00 USD and a physical book for $50.00 USD from Aplia's website.

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* If you purchased an Aplia Access Card from a bookstore, enter the Access Card's payment code on Aplia's website as payment for your Aplia course.

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* You will have access to your digital textbook up until the end of this course.

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